Economics SOL 3.7 SOL 3.8 SOL 3.9 SOL 3.10 Exchange To trade one thing for another. Example: I want...
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Economics • SOL 3.7 • SOL 3.8 • SOL 3.9 • SOL 3.10
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Transcript of Economics SOL 3.7 SOL 3.8 SOL 3.9 SOL 3.10 Exchange To trade one thing for another. Example: I want...
Economics
• SOL 3.7
• SOL 3.8
• SOL 3.9
• SOL 3.10
• Exchange To trade one thing for another.
Example: I want to trade in my green disk for a blue one.
• BarterThe exchange of goods or service
without money.
Example: I’ll give you my cake for your ice cream.
Three Kinds of Money
Cash Checks Credit Cards
Needs vs. Wants
• Needs – what people must have to live.
Food
Clothing
Shelter
• Wants – the things we would like to have, but can live without.
Economic Choice
You make an economic choice when you only have money for certain items, not all.
Example:
I do not have enough money for both popcorn and a pretzel. I must choose, so I buy the popcorn. That is my economic choice.
YUM!
Opportunity Cost
Opportunity cost what you must give up when you make an economic choice.
Example:
I chose the popcorn, so I have to give up the pretzel. That is my opportunity cost.
Supply and Demand
• Supply is the amount of a good or service available.
• Demand is what people are willing and able to buy.
I would like to buy one candy cane, please.
Scarcity - Sometimes there is not enough of something to go around. That item is scarce.
Oh no! Ice cream is scarce!
“I scream, you scream, we all scream for ice cream! La, la, la, la, la!”
The Ice Cream Singers
What can I do with my money?
• Spend it
• Save it
• Invest it Give people money to use to make more moneys, like in
stocks and bonds.
Goods and Services
• Goods • Services
Three types of resources work together in our economy
Human Resources
Capital Resources
Natural Resources
Natural Resources are things we get from nature.
Oil Coal Trees Water
Human resources are jobs done by humans at work.
Capital resources are the machines, tools and buildings needed to do a job.
Producers
Producers make goods or provide services.
Consumers
Consumers use or buy goods and services.
Economic Specialization
Individuals or groups who concentrate on one type of good or service.
Apple farmer Carpenter
Interdependence
People need each other for goods and services.
The Ancient Greeks traded their goods across the Mediterranean Sea.
